Consider industry funds for life insurance
Industry funds are not-for-profit organisations, meaning that they are not owned by shareholders on whose behalf profits need to be made. By contrast, retail funds do aim to derive profits which are paid to shareholders. In general, this means that the fees payable by members of industry funds are lower than those payable by members of retail funds. (Yes, we know that there is often argument about this. But APRA’s own figures suggest it is the case).
Insurance premiums paid insider an industry super fund, usually to TAL, are typically lower than those paid in retail super funds. Given the tax and cash flow advantages that apply to insurances available through super, this means that life insurance through an industry super fund is typically the most cost-effective way for most people to get that cover. Industry super fund insurance premiums have increased significantly in recent years but they are still a very cost competitive option.
Put simply, any recommendation for life insurance needs to be demonstrably better that what is available through an industry super fund in order to demonstrate that the advice is clearly in the client’s best interests.